Question 4 A company achieved annual sales of 1,000 units last year, charging $25 for each unit. It costs the company $10 to produce each unit (average variable cost) whilst fixed cost was $5,000. a) How much profit did the company make last year? Expecting an increase of 30% in fixed cost and a 20% increase in average variable cost this year, the company decides to increase the price it charges each unit to $28. b) What is the percentage change in annual profit if the company maintained its annual sales of 1,000 units this year? c) How many units must the company sell this year to achieve a 40% increase in annual profits